Can I Claim for an Injury if my Employer has Ceased Trading?
Updated: 3 Oct, 2025 By Chris Salmon
In most cases you can still make a work injury claim even if your employer has ceased trading, entered administration, or gone into liquidation. This is because their employers’ liability insurance remains in place to cover claims, even after the business has closed.
Employers must hold insurance under the Employers’ Liability (Compulsory Insurance) Act 1969, meaning claims can still be made even if the business has ceased trading (Source: legislation.gov.uk)
Why the company’s legal status matters
Your solicitor will first confirm the company’s status:
- Ceased trading: The business has stopped operating but still legally exists. Claims may be made against the company, its directors, or owners (for unincorporated businesses).
- Administration: An insolvency practitioner manages the company’s affairs. Claims can be directed through the administrator.
- Liquidation: The company is formally wound up. Claims become more complex but can still proceed via the insurer or liquidator.
Who should I claim against?
Even if the business no longer trades, their insurer is usually responsible for covering your compensation. This applies whether your injury happened shortly before closure or your illness was diagnosed years later, as with occupational diseases.
If your employer has closed, you can still claim through their insurer. Keep contracts, payslips and any policy details. Tracing the insurer is key, and your documents will help your solicitor.
John Kushnick
Legal Operations Director (NAL)
What if I can’t identify the insurer?
If the insurer is not immediately known, the Employers’ Liability Tracing Office (ELTO) provides a free online service to help trace insurers for defunct businesses. Your solicitor will handle this search.
How the process works
- Your solicitor gathers details of your accident or illness and its impact.
- They identify the correct party (administrator, liquidator, or insurer).
- A medical assessment is arranged to support your claim.
- Negotiations begin with the insurer or relevant party.
- Most claims settle out of court, but your solicitor will advise if court action is needed.
Key point
An employer closing down does not mean you lose your right to compensation. With the right legal guidance, it is usually possible to pursue a claim through their insurer.
- Companies House: Company information - check whether an employer is active or dissolved.
- GOV.UK: Employer liability insurance requirements - explains the compulsory cover employers must have for injury claims.
- Health and Safety at Work etc. Act 1974 - cornerstone legislation setting out employer duties to keep workers safe.
- HSE: Health and Safety Executive - the national regulator overseeing workplace safety and employer compliance.
About the author
Chris Salmon is a legal commentator and co-founder of Quittance Legal Services. He has written extensively about workplace accidents, employment rights and the claims process. Chris's work has been cited in national media and he regularly contributes practical guidance to help injured workers understand their options.
Last reviewed October 2025 by Chris Salmon
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